Correlation Between Carlyle Secured and Federated Premier
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Federated Premier at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Carlyle Secured and Federated Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Secured Lending and Federated Premier Municipal, you can compare the effects of market volatilities on Carlyle Secured and Federated Premier and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Carlyle Secured with a short position of Federated Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Federated Premier.
Diversification Opportunities for Carlyle Secured and Federated Premier
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carlyle and Federated is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Federated Premier Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Premier and Carlyle Secured is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Carlyle Secured Lending are associated (or correlated) with Federated Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Premier has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Federated Premier go up and down completely randomly.
Pair Corralation between Carlyle Secured and Federated Premier
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 1.81 times more return on investment than Federated Premier. However, Carlyle Secured is 1.81 times more volatile than Federated Premier Municipal. It trades about 0.08 of its potential returns per unit of risk. Federated Premier Municipal is currently generating about 0.03 per unit of risk. If you would invest 1,115 in Carlyle Secured Lending on August 28, 2024 and sell it today you would earn a total of 585.00 from holding Carlyle Secured Lending or generate 52.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Federated Premier Municipal
Performance |
| Timeline |
| Carlyle Secured Lending |
| Federated Premier |
Carlyle Secured and Federated Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Federated Premier
The main advantage of trading using opposite Carlyle Secured and Federated Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Federated Premier can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Federated Premier will offset losses from the drop in Federated Premier's long position.| Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
| Federated Premier vs. Dws Strategic Municipal | Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance Municipal | Federated Premier vs. DTF Tax Free |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |